Acquisitions (Notes)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

3. Acquisitions

On October 15, 2014 (the "Closing Date"), WNRL purchased all of the outstanding limited liability company interests of WRW from Western Refining Southwest, Inc., a wholly-owned indirect subsidiary of Western ("WRSW"), in exchange for $320 million of cash and 1,160,092 common units representing limited partner interests in WNRL. We refer to this transaction as the "Wholesale Acquisition." We funded the cash consideration through $269 million in borrowings under our Senior Secured Revolving Credit Facility ("Revolving Credit Facility") and $51 million from cash on hand. The issuance of the common units to Western increased Western's limited partner interest in WNRL to 66.2% at the acquisition date. During the first quarter of 2015, WNRL issued additional units to common unitholders through our equity based compensation program, reducing Western's limited partner interest in WNRL to 66.1%. See Note 12, Equity, for additional information.

At the Closing Date, WNRL purchased substantially all of Western’s southwest wholesale assets including the assets and related inventories of WRW's lubricant distribution, southwest bulk petroleum fuels distribution and products transportation. We treated the purchase of WRW's assets as a transaction between entities under common control as required for accounting purposes and, as such, we recorded the purchased assets at Western's historical book value.

We entered into wholesale commercial agreements with Western that have initial ten year terms. See Note 18, Related Party Transactions, for additional information.